Information Flag question After much deliberation, the management of a company has identified that their capital expenditure budget still has a free amount of $100,000. The company is now trying to determine whether to use the remaining funds to fund Project A or Project B. Cost of equipment required Working capital investment required Annual cash inflow Salvage value of equipment in 6 years Life of the project Project A $100,000 $0 $21,000 $8,000 6 years Project B $0 $100,000 $16,000 $0 6 years The working capital needed for project B will be released at the end of the 6th year. The discount rate is 14%. PV factor for 14%: : PV of $1 single payment, now PV of $1 ordinary annuity, 6 years PV of $1 single payment, 6 years 1.0000 3.889 0.456 Question 24 Not yet answered Marked out of 1.00 Flag question Compute the present value of the annual cash inflow of the Project A. Roud to nearest dollar value. Answer: Question 25 Not yet answered Marked out of 1.00 Flag question Compute the present value of salvage value. Round your answers to the nearest dollar. Answer: Question 26 Not yet answered Marked out of 1.00 P Flag question Compute the present value of Project A. Round answers to the nearest dollar. Answer: 1 Question 27 Not yet answered Marked out of 1.00 P Flag question Compute the present value of the annual cash inflow of Project B. Round answers to the nearest dollar. Answer: Question 28 Not yet answered Marked out of 1.00 Flag question Compute the present value of the working capital that will be released after the 6th year in Project B. Answer: Question 29 Not yet answered Marked out of 1.00 P Flag question Compute the net present value of Project B. Round to the nearest dollar. Answer: Question 30 Not yet answered Marked out of 1.00 P Flag question Which project should the company investment in? Project B O Project A